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    Debt and Equity Securities for Jodelie Odelie Company

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    See the attached file.
    Jodelie Odelie Company has a fairly large portfolio of both debt and stock securities. Here's the portfolio at the beginning of 2009.
    All securities were purchased on the first day of the year.

    DEBT SECURITIES
    FMV at Stated Effective Interest
    Security Type Company Purch Price Face Value 12/31/09 # of bonds Rate Rate Term pmts
    Available-for-Sale Flintstone & Jetson 42,000.00 45,000.00 43,150.00 450 8% 9.715% 5-yr semi
    Held-to-Maturity Scooby Doo 46,007.29 50,000.00 45,500.00 100 6% 8% 5-yr annual
    Trading Wile E Coyote 211,950.39 200,000.00 210,000.00 400 12% 11% 10-yr semi

    EQUITY SECURITIES Investee's Total
    Purchase End of Year 2009 Net Cash Dividends
    Security Type Company Purch Price Price/share FMV/share # of shares Income/(Loss) Rec'd 9/15/09
    Equity AFS, 10% Bugs & Thugs* 750,000.00 15.00 13.00 50,000 3,050,100 110,000
    Equity AFS, 12% Popeye, Olive & Brutus 750,000.00 150.00 160.00 5,000 450,000 20,000
    Equity 30% ownership Betty Boop & Pals 50,000,000.00 25.00 28.00 2,000,000 (100,000) 0
    Equity 65% ownership Arlo & Janis Industries 145,600,000.00 28.00 22.50 5,200,000 2,894,700 356,800
    .
    a) Prepare amortization tables for 2009 as needed (include cents, do not round to the dollar).

    FMV at Stated Effective Interest
    Security Type Company Purch Price Face Value 12/31/09 # of bonds Rate Rate Term pmts
    Available-for-Sale Flintstone & Jetson 42,000.00 45,000.00 43,150.00 450 8% 9.715% 5-yr semi
    Held-to-Maturity Scooby Doo 46,007.29 50,000.00 45,500.00 100 6% 8% 5-yr annual
    Trading Wile E Coyote 211,950.39 200,000.00 210,000.00 400 12% 11% 10-yr semi

    Flintstones Carrying value on 7/1/12 should be 43,946.85

    Scooby Carrying value on 1/1/13 should be 49,074.07

    Wile Coyote Carrying value on 7/1/18 should be 200,947.89

    b) Prepare the journal entries to record the purchase, interest payments, revenue, and year-end adjustments for the debt securities for 2009.
    Label each entry as "purchase," "revenue," or "year-end FMV adj."

    FMV at Stated Effective Interest
    Security Type Company Purch Price Face Value 12/31/09 # of bonds Rate Rate Term pmts
    Available-for-Sale Flintstone & Jetson 42,000.00 45,000.00 43,150.00 450 8% 9.715% 5-yr semi
    Held-to-Maturity Scooby Doo 46,007.29 50,000.00 45,500.00 100 6% 8% 5-yr annual
    Trading Wile E Coyote 211,950.39 200,000.00 210,000.00 400 12% 11% 10-yr semi

    Flintstones & Jetson
    Purchase

    Revenue

    Year-End Adjustment should be 658.03

    Scooby Doo
    Purchase

    Revenue

    Year-End

    Wile E Coyote
    Purchase

    Revenue

    © BrainMass Inc. brainmass.com March 4, 2021, 11:35 pm ad1c9bdddf
    https://brainmass.com/business/valuing-securities/debt-equity-securities-jodelie-odelie-company-437381

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    Jodelie Odelie Company has a fairly large portfolio of both debt and stock securities. Here's the portfolio at the beginning of 2009.
    All securities were purchased on the first day of the year.

    DEBT SECURITIES
    FMV at Stated Effective Interest
    Security Type Company Purch Price Face Value 12/31/09 # of bonds Rate Rate Term pmts
    Available-for-Sale Flintstone & Jetson 42,000.00 45,000.00 43,150.00 450 8% 9.715% 5-yr semi
    Held-to-Maturity Scooby Doo 46,007.29 50,000.00 45,500.00 100 6% 8% 5-yr annual
    Trading Wile E Coyote 211,950.39 200,000.00 210,000.00 400 12% 11% 10-yr semi

    EQUITY SECURITIES Investee's Total
    Purchase End of ...

    Solution Summary

    The solution discusses debt and equity securities for Jodelie Odelie Company.

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